uCloudlink Group Inc.

Good morning and good evening, ladies and gentlemen. Thank you for standing by and welcome to uCloud Link Group Incorporated fourth quarter and full year 2021 earnings conference call. At this time, all participants are in a listen-only mode. After prepared remarks by the management team, there will be a question and answer session. Today's conference call is being recorded. I'd now like to turn the conference call over to your host today, Ms. Jillian Zeng, Investor Relations of the company. Please go ahead.

Thanks, everyone, for joining us on our fourth quarter and full year 2021 earnings call today. This earnings release is now available on our IR website at ir.uclolink.com, as well as our newsletter service. I will give a brief introduction to our UCLOLINK team. Zhi-Ping Peng is our co-founder and chairman of both of the directors. Chao Huichen is our co-founder, director, and chief executive officer. Yi Mengshi is our chief financial officer. Zhu Tan is our vice president of the marketing and sales. Our CEO will begin with an overview of our company and business highlights, which will cover section one of the early presentation posted on our IR website. Our CFO, Yi-Meng Shi, will then discuss our operation highlights and financial results as presented in Sections 2 and 3. Before we proceed, please note that this Quorum contains forward-looking statements made pursuant to the safe harbor provisions of the Private Security Litigation Reform Act of 1995. These forward-looking statements are based on measurement's current expectations and observations that involve the known and unknown rates, uncertainties, and other facts not under the company's control, which may cause actual results, performance, or achievements of the company to be materially different from the results, performance, or expectations implied by this forward-looking statement. All forward-looking statements are expressly qualified in their entirety by the contrary statement with the factors and details of the company filings with the ICC. The company does not assume any obligation to revise or update any forward-looking statements as a result of new information, future events, chance in market conditions, or otherwise, except as required by law. Please also note that Euclid Link's earnings press release and this conference call include discussions of the non-audited gap financial information as well as the non-audited non-gap financial measures. Euclid Link's press release contains a reconciliation of the non-audited non-gap measures to the non-audited most directly comparable gap measures. I will now turn the call over to our co-founder and CEO, Mr. Chao-Hui Chen, please go ahead.

Yeah, thank you. There are similar contents as the ending presentation of the third quarter of year 2021. I will focus on our technology and recent development. And let's move to the page 13. uClouding 1.0 is our international data connectivity services business. which has had a strong track record of high growth margins and profitability with ongoing growth potential. We have established an intelligent wholesale to retail repackaging solution to minimize the unique cost of data traffic. In that, as data package of single operator all across mobile network operators, mobile virtual operators, are priced differently. This is attributable to our large SIM card pool and our ability to acquire data packages at local wholesale prices from operators and partners. We further differentiate ourselves with our multi-network reselection and combination technologies, which could ensure high-quality data connectivity and improve user experience. uClouding 1.0 business monetization model includes retail to see, rental or selling to the end user, wholesale to be, business partners, and our PaaS and SaaS services such as CRM, billing management, devices selling and rental management, etc. For wholesale to be, we can act as a reseller or provide commission services to our business partners. We allow our business partners to share data traffic pools through our PaaS and SaaS platform and charge a commission fee. In year 2021, We strive to accelerate the recovery of our 1.0 business, which was reflected in a positive trend in the daily active terminals, called DAT, of 1.0 business growth. As the number of international travelers increased in various markets, and our 1.0 business revenue increased in the third quarter of year 2021, year over year. The revenues of our 1.0 business in our North American and the Europe market increased during the first quarter of the year 2021 year-over-year. Although the total revenues from the same line of the business experience year-over-year decreased in the same period due to the impact of the COVID-19 violence. Despite the impact the pandemic has had on our 1.0 business, it has also created opportunities for potential growth, including the demand for mobile data related to travel tracking, vaccination records, digital passports, and the COVID test report. We also anticipate that we will see fewer competitors in the post-pandemic market. But we cannot assure you that one point of business will not be negatively impacted by the COVID-19 pandemic in the year 2022. We remain confident in the prospects for international travel with the worldwide vaccination continuing to progress and more and more countries opening their borders to tourists in the year 2022 and beyond. With that, I would like to reiterate our vision for the 1.0 international data connectivity business. Our plan is to not only continue providing existing high-quality 1.0 offerings, but to size big market share with the development of more innovative products and services. Let's move to page 14. uClouding 2.0 is our local data connectivity services business and has become a new drive of revenue growth since the year 2020. Its business monetization model is similar to that of uClouding 1.0, with a massive potential local user base. Our new HyperCon technology contribute to the further development and the growth of our uCloud in 2.0 business. And we have expanded the business scope of our local data connectivity services. Currently, our innovative HyperCon technology is widely accepted by mobile network operators and business partners in various industries with greater growth potential, such as with local partners in China, US, and Japan. Our 2.0 business shows a greater deal of resilience with proven high demand and growth potential during the pandemic. We have operators improve their data services and solve the data connection problems through our PaaS and SaaS platform. We provide high quality data connection for 5G applications in response to to the increased demand for better connectivity services. Furthermore, as people get used to the new normal, our products and services provide better-performing solutions for remote work and learning, which require reliable connectivity as well. For example, our new tablets equipped with Hyper-Con and Cloud Sync technology have been put to use in new industries such as education. We have made progress through HyperCon solution with mobile and fixed broadband business. Under various application scenarios, such as home broadband, for example, our mobile and fixed broadband business cooperation with one of our major network operators in China has been successfully launched and distributed to more provinces. We also plan to embed more Glaucoma Insight, we call GMI, in smart device by cooperating with more intelligent hardware manufacturers. In addition, we have extended our footprint into the more application scenario, including but no limited to Internet of Things IoT modules, industry Wi-Fi loaders, IP camera, power supply, emerging services, like live broadcasting, e-commercial, and autopilot, etc., and are actively exploring new business prospects to serve a broader spectrum of IoT applications. We expect our 2.0 business to grow with the support of our innovative cloud-themed and hyper-con technology. as we continue to introduce our solutions, services, and products to the market and strengthen our cooperation with the local partners. Let's move to page 15. Based on our innovative cloud theme and hybrid technology solution, we continue to develop and broaden our portfolio of offerings with new products and services, such as our self-developed terminals, third-party devices. For example, after we unveiled our new HyperCon technology and products in June of year 2021, we launched these solutions and products to the market in the second half of year 2021, such as Neumann, the world's first HyperCon 5G mobile Wi-Fi, and Genie, a tablet device, in third quarter of year 2021, and a mini-turbo portable Wi-Fi hotspot equipped with Hypercom in the fourth quarter of year 2021. Our IP camera, IPC, has complete testing and expected to launch commercially soon. Our Hypercom technology solution has been well-received and related products are gaining recognition, proven by growing user base across a wider spectrum of industry. Going forward, we plan to launch more of these types of innovative products and services. uClouding positioned itself as a pioneer technology solution provider in the data connectivity market. In year 2021, we made it a priority to invest in research and development, most notably in technologies like Cloudafine and Hypercom that are compatible with various application scenarios, both of which greatly reinforce our technology advantages. Our mature 1.0 business and newer 2.0 business will together promote the long-term development of the PaaS and SaaS ecosystems, which have been recognized by various business partners. As stated in our earnings release, we anticipate growing total revenue for the full year of 2022 by 15% to 35% to arrange between 85 million U.S. dollars to 100 million U.S. dollars, versus total revenue of the U.S. dollar, 73.8 million in year 2021. The company expects to improve financial performance with the support of our commercialized Hypercom technology and related 5G products, the continuous business expansion of our existing portfolio of diverse IoT application scenarios, as well as the ongoing efficient improvement strategy implemented since the quarter four of the year 2001 to reduce operating expense. We believe that From the connected to better connection, uCloud Link is a significant driving force in the transformation of the increasingly advanced information era. We are committed to build a more connected future for more customers and users, and we strive to make a positive impact in serving the global user community. I will now turn it over to our CFO, Yimeng Shi, who will go through business and financial highlights.